Trader Programme Self Quiz

30 Questions | Total Attempts: 217

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Trader Programme Self Quiz

This self quiz is designed to enable the trader to know whether s/he is ready to start the Blue Point Trading - Trader Programme. It is certainly not comprehensive, but will give you an idea of the level of basic competence needed to be successful at Blue Point Trading. After you have taken the quiz, the results will be given along with further instructions.


Questions and Answers
  • 1. 
    When a country's central bank raises its core lending rate, this is usually ...  
    • A. 

      Does not have any real effect on the country's currency.

    • B. 

      Bullish for the the country's currency.

    • C. 

      Bearish for the the country's currency.

    • D. 

      Resets the country's currency to the previous exchange rate.

    • E. 

      None of the above.

  • 2. 
    If Bonds are going up in price this is generally ...
    • A. 

      Bullish for stocks.

    • B. 

      Bearish for stocks.

    • C. 

      Depends on the underling credit default swap rates.

    • D. 

      A signal that the central bank is ready to make a policy change in the same direction.

    • E. 

      Has no real effect on stock values.

  • 3. 
    A stock buy back plan done by a public company is generally ...
    • A. 

      Prohibited under the country's laws.

    • B. 

      Means the company's is running low of cash.

    • C. 

      No effect on the value of the stock.

    • D. 

      Bearish for the stock.

    • E. 

      None of the above.

  • 4. 
    A rise in GDP for a country is a sign of ...
    • A. 

      An economy that is growing.

    • B. 

      Potential inflation fears could arise due to the over heating of the economy.

    • C. 

      Stock values could rise.

    • D. 

      Interest rates could rise.

    • E. 

      All of the above.

  • 5. 
    If durable good orders and retail sales fall, this is generally ...
    • A. 

      Good for a country because it will increase job growth.

    • B. 

      Causes GDP to fall.

    • C. 

      Causes interest rates to go up.

    • D. 

      Causes stock values to rise.

    • E. 

      All of the above.

  • 6. 
    Correlations between stocks and bonds ...
    • A. 

      Occur very rarely.

    • B. 

      Occur only when central banks raise interest rates.

    • C. 

      Occur often.

    • D. 

      Are highly dependent on FOREX values of 3rd world countries.

    • E. 

      Is a sign of financial stress, leading to economic down turns.

  • 7. 
    The markets in general can be considered as ...
    • A. 

      A leading economic indicator.

    • B. 

      A place where governments can place sovereign debt.

    • C. 

      Companies can launch IPOs.

    • D. 

      Large speculation can occur.

    • E. 

      All of the above.

  • 8. 
    Economic reports given out by governments should be ...
    • A. 

      Rarely listen to as they are generally politically motivated.

    • B. 

      May not be accurate, but its the best data available and because others trade off them, we should look at them carefully.

    • C. 

      Are generally not too important for a day trader.

    • D. 

      Are only good if certified by your broker.

    • E. 

      None of the above.

  • 9. 
    Bonds will go down in value and up in terms of interest rates if ...
    • A. 

      The question's premise is wrong. Bond values and interest rates go up at the same time.

    • B. 

      There is a perceived risk of a default on the bond.

    • C. 

      The central bank keeps rates steady all the time.

    • D. 

      The question's premise is wrong. Bond values and interest rates go down at the same time.

    • E. 

      None of the above.

  • 10. 
    If a company announces suddenly bad earnings for its past quarter, this is a sign of ...
    • A. 

      It depends of the PE ratio is above the central bank rate.

    • B. 

      Dividend is likely to be raised.

    • C. 

      It depends of the GDP report that may come out at the same time.

    • D. 

      Company's performance has gotten worse and the stock value may go down.

    • E. 

      None of the above.

  • 11. 
    If you are short an instrument, your position PL is positive, and you feel there is more profit to be gained, but you are worried that it might move against your positive PL position, you might want to ...
    • A. 

      Place a market order to go short.

    • B. 

      Place a market order to go long.

    • C. 

      Place a normal stop order at break even.

    • D. 

      Place a sell stop limit order, 5 ticks above the high of the day.

    • E. 

      None of the above.

  • 12. 
    If you are short 2 contracts of an instrument, and then sell short a 3rd, to get flat you will need to ...
    • A. 

      Sell 3 contracts.

    • B. 

      Buy 3 contracts.

    • C. 

      Buy 2 contracts and sell 1.

    • D. 

      Sell 2 contracts and buy 1.

    • E. 

      None of the above.

  • 13. 
    A bracket order is commonly a position order strategy that after the initial position has been taken ...
    • A. 

      Will have a profit target in place.

    • B. 

      Will have a stop in place.

    • C. 

      Has the entry price that is between the profit target and stop prices.

    • D. 

      Can be done on both long or short positions.

    • E. 

      All of the above.

  • 14. 
    GTC or "Good till Canceled" means ...
    • A. 

      When the market closes the order is removed.

    • B. 

      Will stay in place even if the order is executed.

    • C. 

      Normally requires an additional commission by the broker.

    • D. 

      Can only be done on long orders.

    • E. 

      None of the above.

  • 15. 
    Limit orders are orders that ...
    • A. 

      They are the same as a market order.

    • B. 

      Can only be done on long orders.

    • C. 

      Places a specific price that you are willing to buy or sell an instrument.

    • D. 

      Is the same as a stop order.

    • E. 

      None of the above.

  • 16. 
    A margin call means ...
    • A. 

      Your position has moved against you to the point that you now can take additional positions.

    • B. 

      The broker in effect will stop you out automatically, once you fund your account with additional funds.

    • C. 

      You are a bad trader.

    • D. 

      Your risk management strategy is working.

    • E. 

      All of the above.

  • 17. 
    If you have an OCO (One-Cancels-the-Other) order, this means ...
    • A. 

      A stop order that gets hit, will automatically remove the existent profit target order you may have had, relative to the original position order.

    • B. 

      If you are short it will cancel the long.

    • C. 

      If you are long it will cancel the short.

    • D. 

      An order that gets filled that will disallow all potential additional orders, relative to your other positions in your portfolio.

    • E. 

      None of the above.

  • 18. 
    Margin in a futures contract means ...
    • A. 

      The price spread between the bid and ask price.

    • B. 

      The market value of the underlying instrument.

    • C. 

      The amount potential you can make on the trade.

    • D. 

      The amount required to open a futures account at a broker.

    • E. 

      None of the above.

  • 19. 
    At futures contract expiry, and you are long ...
    • A. 

      You potentially could take physical delivery, if you do not sell before hand.

    • B. 

      You must buy an option to cover the position.

    • C. 

      You must sell an option to cover the position.

    • D. 

      All contracts will then get paid a dividend at par.

    • E. 

      None of the above.

  • 20. 
    A short put option means ...
    • A. 

      You have risk from the put strike price to 0.

    • B. 

      You want the underlying instrument to go up in value.

    • C. 

      If not hedged with another position, it is often called a naked position.

    • D. 

      You will loose money if the underlying instrument goes down in value.

    • E. 

      All of the above.

  • 21. 
    Moving Average Convergence-Divergence (MACD) is a common indicator, that ...
    • A. 

      Some times considered a lagging indicator, as it is price derived.

    • B. 

      Is an indicator that relates to your margin account.

    • C. 

      Is a type of order management indicator.

    • D. 

      Identifies the order quantity.

    • E. 

      None of the above.

  • 22. 
    The following chart pattern indicates probable ...
    • A. 

      Time to sell on the positive retrenchment to move lower.

    • B. 

      Market volatility - do nothing.

    • C. 

      Engulfing green candle and hence a market bottom.

    • D. 

      Head and shoulders pattern is approaching.

    • E. 

      None of the above.

  • 23. 
    The following chart pattern indicates probable ...
    • A. 

      Shooting moon pattern, get ready to buy.

    • B. 

      Rertracement rally about to start on the next possible bid position.

    • C. 

      Bear flag, market to move lower.

    • D. 

      Bull flag, market to move higher.

    • E. 

      All of the above.

  • 24. 
    The following chart pattern indicates probable ...
    • A. 

      Wheel pattern, market ready to go up.

    • B. 

      Wheel pattern, market ready to go down.

    • C. 

      Market chop, market ready to go up.

    • D. 

      Market chop, market ready to go down.

    • E. 

      Market chop, wait for a pattern to develop.

  • 25. 
    The following Scholastics oscillator indicates that a probable ...
    • A. 

      A market rally has occurred.

    • B. 

      Scholastics is a lagging price derived indicator.

    • C. 

      Scholastics oscillators are not the only indicator that you should look at.

    • D. 

      Good traders keep an open mind to new information that may come to the market.

    • E. 

      All the above.

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